The Way Real Estate Companies in Bellingham Make Listing Agreements

Posted by harryjason on November 20th, 2016

Definition of the Agreement

A listing agreement is a written contract between a listing agent (i.e., real estate agent) and a seller of a real property. In it, the agent assumes the right to advertise and handle the sale of the seller’s house.

Both parties will benefit from the terms and conditions of a fair listing agreement. On one hand, the agent benefits from it since you’re obligated to work with him for a certain period. He will also earn income, known as a commission, upon the conclusion of the sale.

On the other hand, your rights as a seller are protected by the agent. The agreement lists down the responsibilities of the agent and your legal recourse in case he violates the terms and conditions.

Indeed, if you have plans of listing Homes for sale Everett with an agent, you should have a listing agreement for your mutual protection. 

Contents of the Agreement

Like all legal contracts, a listing agreement has several standard terms used in it. You should be aware of their meaning so that you’re in a better position as a seller. 

• Exclusive right to sell

This refers to the agent’s exclusive right to list your property for the agreement’s specified duration. You and your agent may agree on another type of arrangement but this is the most common type. 

• Duration

This is the specific period when the listing agreement is in effect. As a seller, you should keep the duration short, usually three to six months. You can walk away, so to speak, when the agent’s performance isn’t up to par. 

• Commission

This is the amount of money paid to your agent after the completion of the sale. You may pay between 5 and 6 percent of the proceeds of the sale.

• Protection clause

This is a must for the protection against lawsuits of both parties. You have to ensure that the protection clause extends beyond the duration of the agreement. You can be protected from the payment of the agent’s commission when you find a buyer while being represented by the agent.

• Dispute resolution and representations

This is the part where you and the agent agree on the best type of resolving disputes. Your choices include mediation and binding arbitration. 

When in doubt about a listing agreement, you should let your attorney look into it. You want to be protected from the unscrupulous plans of unreliable professionals in Real Estate Federal Way, for example. You have to cover your back especially as it’s your real asset at stake here.